Federal Bank mops up ₹1,500 crore via maiden issue of 10-year infra bonds
Federal Bank has raised ₹1,500 crore via its maiden issue of 10-year infrastructure bonds on a private placement basis at a coupon rate of 7.76 per cent.
The bond issuance comprised a base issue of ₹750 crore and a greenshoe option of similar amount.
Lakshmanan V, Group President & Head of Treasury, said on the day of the infrastructure bonds issuance, they were priced at a spread of about 80 basis points over the corresponding maturity (10-year) benchmark Government Security.
The issue was reasonably well-subscribed, with prominent investors being insurance companies and pension funds, among others, he added. The said debentures shall be listed on the National Stock Exchange of India.
In view of the success of this debenture issuance, the Bank may look at a follow-on issuance in six months.